The sole intention of
profit-seeking among organisations has now been increasingly superseded by the
need to acquire the favour of customers: both existing and potential customers.
Companies that intend to be at the top of their respective industries, or even
survive, need the favour of the public. They could do this by presenting a
positive image through marketing or they could touch a more profound aspect of
their target market particularly those applicable to the morals and principles
of the public. This need spawned what is termed as corporate social
responsibility (CSR). It is an attempt of the company to address the more
pressing issues regarding their role in society in general. However, there are
lingering debates on why, regardless of the requirement of corporate social
responsibility in legal or societal terms, there appears to be companies who
seeks to circumvent this responsibility. This paper intends to talk about this
area of responsibility among companies. First off, a theoretical discussion on
the definition, need, and implications of the CSR on the company will be
provided. The second part of the discussions will be an analysis of an existing
organisation’s CSR. For this study, the focus will be the CSR of the leading
fast food chain in the world, McDonald’s. After providing a discussion on the
said case, an analysis will be provided with arguments and observations based on
past and existing literature on the company’s CSR. In the end of the paper, a
summation and conclusion based on the observations made by the writer will be
provided.

Corporate social responsibility
(CSR) has definitely been a part of modern business culture. Numerous studies
and books have been published in an attempt to document the requirements held by
implementing such in a company. In the work of (2003, 4) he indicated that
the lack of such responsibility among companies have triggered scandals and even
downfall of large companies. Missteps in market trading and even deception on
ways of disposing the company’s waste appear to be among the most discussed
topics in the existing literature on CSR. Sims called the breach of this social
responsibility among businesses as a “business ethic missteps.”(p4) This
represents an omission of a company in considering the existing values and
morals in a particular society. In this context, (2003) drew a couple of
general claims. He stated that society has given keen interest on issues of
corporate social responsibility in the last four decades. In the same way, he
also indicated that having such an interest rested on such occurrences,
headlines relating to these breaches tend to add-up as attention grabbing
scandals. ()

As compared to the business
environment in the earlier part of the 1900s, the stakeholders appear to be more
involved in the workings of an organization. Earlier studies on corporate social
responsibility indicated it as a means to battle the “social cost.” (1995) In
the said study, they found a positive correlation between social responsibility
and financial performance. Though it is not seen as a constant outcome, majority
of the studied companies tend to display such.

Thus, for the purposes of this
paper, the operational definition of corporate social responsibility would be
based on the two indicated definitions above. It will be used to define measures
that will keep companies from engaging in business ethical missteps and a means
to deal with the social costs of the company. Thus, the following discussions
will be presenting arguments why companies tend to implement more than that of
what is legally required of them. This will be manifested on the case study of
McDonald’s UK later on this paper.

Improving their image as a
corporate citizen will entail certain strategies to adhere to accepted
principles of social responsibility. The actions that these companies show
reflect how they intend to treat their customers. The strategies used in luring
people into buying their products do not clearly present malice on the part of
the companies. If a glimmer of questionability appears on their midst, then
companies should compensate it to other aspects such as the services offered or
even how they deal with the environment when they discard their wastes. That
does not make questionable marketing strategies more acceptable; however it does
ensure that the public is getting their money’s worth. The following discussion
will be indicating how CSR have positively affected the company in improving
several aspects of its operations: the buying behaviour of the consumers; the
financial performance of the company; and the overall market share.

Numerous studies have been made
indicating the effect of CSR on the buying behaviour of the target market of the
company. A recent addition is the study of (2001). In their discussions,
they indicated that for buying behaviour and CSR to have a positive correlation,
several criteria has to be met. The consumers have to become aware of the “level
of social responsibility” held by the company. () This means that the making
the public know what the company is doing comprise of a huge bundle of how it
could positively affect the purchasing behaviour of the public. Effective
marketing and advertising comes to play on this category. The employment of mass
media or any other tools would be the key in informing the public of their
activities.

(2001) called this activity
as “cause-related marketing.” It is in indicating the need for awareness that
they presented the factor as a major inhibitor of responsiveness among the
target market of the organisation. Another criteria indicated in the study would
be “consumer appreciation.” () This means that it is not enough that the
consumers are aware of the activities held by the company. The consumers must
also realise the importance and implications of such activities in society in
general.

On another study, it appears that
“corporate reputation” similarly has its indicated to have an effect on the
buying behaviour of the consumers. (2005) Nevertheless, the said study indicated
that during the periods when a consumer is shopping for a particular commodity,
whether the CSR of the company is reputable is not a major part of its decision
making factors. Brand image and consumer fairness still appears to be at the top
of the consumer’s priorities. However, this could possibly change with proper
marketing. According to the studies of
(2006) and (1991) television commercials has been the main tool of
marketers to promote their food. Constant exposure to such advertisement could
lead to retention of information and thus consequently persuading a person that
such products are great. ( 2006)

All in all, the ability of the
company to provide information on the activities that they hold in accordance to
their CSR highly represents capability of the company to actually influence
consumer behaviour. In this end, not only does the company need to present the
public that they are doing their share in society as good companies. They have
to present that they are also willing to provide extra effort in making the
world a better place to live in. Though it appears that doing such activities
and programmes do entail added expenditures on cause-related marketing and, of
course, with the actual CSR project itself, companies now realise that the
return of investment on these activities are highly lucrative. This even comes
to the point where the marketing of these activities are subject to abuse of
unscrupulous marketers using unethical means of marketing. ()

As stated in the earlier parts of
the paper, the work of (2003) indicated that financial performance does
have a positive correlation with the company’s CSR. However, recent studies
indicate that the problem with this claim is that the return of investment held
on these activities is merely represented in terms of social ROI. (2005) This
means that regardless of how effective or grandeur the project a company makes,
immediate financial returns may not be readily observed.

According to the said study,
inherently there are several factors that drive companies in implementing CSR
programmes. These include “managing risk and reputation; protecting human
capital assets; responding to consumer demands; and avoiding regulation.”
(Doane, 2005, 215) Seen at this level, the implementation of such programmes is
indeed lucrative. It represents an investment worthy of the risk.

The problem, according to the
study, of this emerging trend is that the use of CSR becomes more driven by
business as that of actually promoting the betterment of society. (2005)
“Business-driven” CSR represents everything that is imperfect in the realm of
business. All is driven by the all mighty pound. Everything has to have a price,
even good deeds made to society.

As (2005) this trend has
triggered companies and commercial organisations to make CSR programmes based on
economic decisions. Improvements that these programmes tend to create manifests
only in areas where actual profit could be made. To illustrate, (2005)
pointed out the case of the tobacco companies, the big dog of sin products. In
considering the said case, the CSR initiatives held by tobacco companies tend to
improve the Dow Jones Sustainability Index of their shareholders, not as much as
to improve the wellbeing of the major consumers. A similar case is seen in the
creation of supermarkets by Tesco. (2005) The study claimed that the major
societal implications of such companies would be greater traffic and possibly
liquidation of local businesses. It claimed that the CSR programme of providing
computers for schools is a considerably distant cry from the actual improvement
needed by society from that company.

Fortunately for such companies, as
stated in the earlier part, this aspect of social responsibility is not at the
top of the priorities of the consumers. There will be less people thinking of
the major inconveniences provided by the company like a more congested
neighbourhood. As long as companies have an arsenal of marketing tools to use,
they could always find a way to spin this on their favour.

As seen in the discussions prior
to this part of the paper, the CSR does have an impact on the overall
performance of the company. It is thus unsurprising that it would have a
positive effect on the market share of the company. Even in earlier studies on
social responsibility, this has been seen as a fact. (1993)

In the said study, it is indicated
that managers see the implementation of CSR as a basic ends in favour of their
interests as well as the company’s. (1993) This means that a socially
responsible company would have a greater capacity to acquire a much larger
market share than those who are perceived to be otherwise.

The company to be looked at in
this paper will be one of the leading fast-food chains in UK, McDonald’s. The
presented case would be based on the annual CSR report of McDonald’s UK acquired
in their website. Specifically, the discussions will be divided into several
parts. Each part will be discussing the performance made by the company
concerning the required social responsibility they have. These include the
supply chain; information; people; environmental practices; Ronald McDonald
Children’s Charities; and the Football Programmes.

The company have acquired their
supplies from over 17,000 farmers in UK. The supplies range from beef, eggs,
chicken, onions, potatoes, rapeseed oil, and milk. The report also indicated
that the company works closely with the Red Meat Industry Forum and the NFU in
seeking high quality supplies for the individual branches all over UK. Moreover,
the standards held by the company are based on the McDonald’s Agricultural
Assurance Programme (MAAP) which specifically indicates the level of quality
needed from the suppliers of the company.

In the context of information, the
company reported that it has provided leaflets indicating the nutritional
information of the menu offered by the organisation. They have also exploited
other mediums as complex as the internet and as simple as the back of their
trayliners. Other informational products include the publishing of leaflets
concerning their salads and Happy Meal combinations along with a promotional
leaflet encouraging parents to feed their kids five portions of fruits and
vegetables daily.

In the context of their employees,
the report indicated that they have given them the chance to develop through
training and development. In this initiative, the company have helped most of
its unskilled personnel to acquire higher capabilities for the company. On the
other hand, the report also indicated that they continue to adhere to a diverse
workforce.

On a more pressing level,
specifically the environmental element, the company has reported to have worked
closely with the Department of Environment, Food and Rural Affairs, the Local
Government Association, and Tidy Britain Group. They have similarly started the
“just bin it” campaign throughout UK. It is a clean up campaign seeking to
establish a more sanitary environment.

The said programme is focused
primarily on giving children with hospitalisation assistance, particularly on
the case of accommodation of the families of a hospitalized child. The funds
acquired come from the donations of the public and from fund drives held by the
company.

The company is apparently doing
its share in improving the social state of UK. It is providing its consumers
with quality food supplies coming from the top suppliers in the country. This
shows not only does the company ensure the quality of the food offered; it also
helps the local agricultural industry in the process. Moreover, it provides the
information that the customers needed regarding the nutritional content of the
menu. In this manner, the customers are given the opportunity to exercise due
diligence in their consumption. In the same manner, they have given the
consumers the encouragement to seek healthy foods like fruits and vegetables
through their CSR initiative. The most notable indication that McDonald’s is
becoming socially responsible is shown in the support of physical activities
among children. The issue of obesity and unhealthy foodstuff has been the bane
of the company’s existence. In this context, the company is apparently doing its
share in providing opportunities for kids to become physically fit.

The fast food industry is one of the leading
industries in the world. Aside from the delectable menus offered by the players
operating in the fast food industry, these companies have acquired specific
marketing strategies such that they could acquire majority of the existing
market share. Thus, the fight among the players of this industry is not limited
to the provision of an innovative set of menu or service, the means in which the
target market is reached accounts most of the reason why companies like
McDonald’s are among the most notable brand names in the industry.